From The Komisar Scoop, veteran investigative journalist Lucy Komisar – who was way ahead of the pack in her unraveling of the financial underworld – gives us a glimpse at a major hub of financial crime – off-shores havens:
“Secrecy havens have 1.2 percent of the world’s population and hold 26 percent of the world’s wealth, including 31 percent of the net profits of U.S. multinationals. According to Merrill Lynch & Gemini Consulting’s “World Wealth Report” for 2000, one third of the wealth of the world’s “high net-worth individuals” (as banks like to call them), nearly $6 trillion out of $17.5 trillion, may now be held offshore. Some $3 trillion is in deposits in tax haven banks and the rest is in securities held by IBCs and trusts.
Experts believe that as much as half the world’s capital flows through offshore centers. The International Monetary Fund (IMF) said that between $600 billion and $1.5 trillion of illicit money is laundered annually, equal to 2 percent to 5 percent of global economic output. These offshore centers awash in money are the hub of a colossal, underground network of crime, fraud, and corruption.”
My Comment:
Komisar, of course, is unreservedly for banking transparency. As a libertarian, however, I find this very problematic. It’s true that crooks abuse banking secrecy. But practically any rule is liable to abuse.
The conclusion isn’t to demand more banking transparency. Considering the volume of transactions in the markets, that would effectively mean more governmental authority. More governmental authority means less government transparency – which means we’ve substituted a gain of transparency in one area for a loss in another.
The logical conclusion is to remove the incentive for secrecy – which is taxation. Reduce taxation, and fewer corporations would be hiding money. The fewer groups with off-shore accounts, the easier to monitor secret transactions that seem to be criminal without harming the privacy of non-criminal secret accounts.
Why would non-criminals not want their financial transactions transparent?
1. Defense against litigation (deep-pockets often attract abusive lawsuits)
2. Claims from unscrupulous family members or business associates
3. Abuse by the government for political reasons; abuse by enemies and political partisans
4. Defense against other kinds of crime
Another libertarian approach would be to decriminalize drugs and end the Federal government’s corrupt pursuit of drug dealers. Instead, focus on the easier task – address the addictive demand for drugs.
“Another libertarian approach would be to decriminalize drugs and end the Federal government’s corrupt pursuit of drug dealers. Instead, focus on the easier task – address the addictive demand for drugs.”
And to build stronger men, women and children our government should:
One year plan:
1- Development of 5 year and 10 year plan
2- Immediate withdrawal of financial and military support of Israel.
3- Immediate freeze on all working and residence visas in the US until a system and regulations allow only the best and the brightest to enter.
4- Elimination of the CIA.
5- Elimination of the NSA.
6- Elimination of all Black Budget projects.
17- Immediate closure of all lobbying organizations.
28- Immediate release of all prisoners in federal prisons for drug related crimes.
32- Immediate closure of FEMA.
37- Eliminate automatic diplomatic immunity except on a case by case basis.
40- Remove all people with dual citizenships from all government employment and office.
44- Eliminate dual citizenship status with US.
51- Close Federal Reserve and return creation of money to Federal Government.
62- Eliminate Usury with interest caps.
71- Eliminate speculation in stocks and commodities with high capital gain taxes for a holding period of five years.
85- No deductions to corporations for investments in overseas operations. Government policy is to build in America.
97- Eliminate all tax credits and payouts for companies like Walmart or Dell to locate in a particular state or county.
99- Eliminate all law enforcement techniques that allow agents, informants, and government provocateurs to act in an illegal manner, to coach, entrap, or persuade someone to commit a crime.
100- Pardon for Martha Stewart.
102- Eliminate all affirmative action and other programs that restrict freedom of association.
103 – Eliminate all minimum wage laws and overtime laws.
104- Eliminate tenure in all government jobs.
Two year plan:
1- Remove all US military forces and influence from Iraq.
2- Remove all US military forces and influence from Afghanistan.
3- End all sales of US military weapons and technology to all foreign countries.
4- End all joint military projects and sales to Israel.
5- Close down all military bases outside of the US States.
6- End all government bailouts to corporations, global organizations, and individuals.
7- Eliminate all retirement programs retroactively for all congressmen, senators, VPs, and Presidents.
8-Eliminate all corporate, non-profit, and foreign donations to politicians. Only contributions to candidates must be personal with max of $500 USD. Each candidate must publicly display each donation and the person’s name and address on internet site before 40 hours before the poll opens. Complete transparency.
9- Eliminate all Federal and State financial support to foreign countries.
10- Stop the drug war and treat drugs as a social problem and not a criminal problem.
11- Give all illegals in the US 1 year to leave on their own. Afterwards all will be rounded up shipped back home or kept in camps to be used as cheap labor for cleaning roads, national forests, as agricultural workers, etc.
23- Remove all porn sites from .com domains to a .xxx domain with severe penalties otherwise.
27- Remove all gambling sites from the .com and other domains and move to .gam domans with severe penalties otherwise.
34- Build fence on Mexico / US border with kill zone manned by Army troops returned from overseas.
Five year plan:
1- Remove all federal and state property tax and income tax exemptions and exclusions from non-profit organizations.
2- End all personal income taxes and lay off staff at IRS who collect and manage this money.
3- Eliminate all employee unions – each person will negotiate their own wages and pay.
4- Close all government “social services” departments at federal and state levels. Fire all employees.
5- Convert military to “fully employed government employees.” No more highly paid contractors working for $125,000 per year next to a army technician making $1200 per month.
6- Eliminate tariffs, taxes and duties on all imports so that the US consumer can enjoy the benefits of cheap foreign labor.
7- Reject all importation of products from any country that does not have the same environmental, labor, and safety regulations as the US.
8- Allow any company that will pay the licensing fee to manufacture any and all patented products developed in public and private university research labs funded by tax payer dollars.
23 – Convert the United Nations buildings and structures to office and warehouse space.
64 – Split school into a three way system: one path for the brightest and ambitious leads to university, one road leads to two year college for technician type and clerical type work, one road leads to vocation education and a dead end to those who want to disrupt.
Ten year plan:
1- Phase out all social security collections and payouts and fire all employees associated.
2- Phase out all welfare payouts and fire all employees in welfare offices.
3- Phase out all farm subsidies and lay off staff associated with agricultural subsidies.
4- Eliminate all non-profit organizations and tax deductible exemptions.
5- Remove all federal subsidies to public education.
6- Remove all federal subsidies that are used as blackmail to coerce states to follow Federal requirements at state level.
7- Eliminate all price support programs for steel, agriculture, weapons, UPS and Fed Ex.
This could be a good start. We want clean and lean government for building a society, not eating off it like a parasite.
Sherwood Smith